Cash homebuyers typically have a huge advantage in real estate because they can close quickly and provide sellers with a sense of comfort. Does this mean a buyer taking out a mortgage shouldn’t try to compete with cash buyers? Definitely not. If you’re well employed, have a solid savings, have good credit and very little debt, and can put down 20%, your purchase should be just as solid.
1. Be honest about your finances. Provide the seller with a pre-approval letter from your lender, and be open about your financial situation. Tell them your salary and how much money you have in the bank. Show a copy of your credit report, along with relevant bank statements.
2. Ask your lender to be quick with the mortgage. See if your mortgage professional can expedite the process for you. Provide your lender with any financial documents they need. Let the seller know that you’re trying to move the process along as quickly as possible.
3. Inspect. Get your inspector in and out. It might cost more to get the inspection completed within a few days of having your offer accepted, but it will show the seller you’re serious. It will also give them peace of mind to know that hurdle is over and done with.
4. Pay more. Cash buyers usually expect a discount because, well, they’re paying cash. Because of this, cash buyers typically make lower offers. To increase your odds of scoring the house, offer a little bit more. The seller will definitely think twice if your offer is more appealing. If you plan to live in the house for several years and it’s the magical home of your dreams, paying a little more will absolutely be worth it.
5. Get personal. Some buyers write personal notes to sellers, hoping to appeal to their emotional side. This sometimes works! Tell the seller who you are, why you like the house, and what your intentions are over the years. It definitely can’t hurt.